Gemfields Bounces Back into the Black

RAPAPORT... Gemfields recorded a profit in 2019 as the cancellation of a Zambian export duty bolstered the value of the company’s Kagem emerald mine.

The miner earned $39.1 million for the year, compared with a loss of $60.4 million in 2018, it estimated in a trading update Tuesday. This mainly reflected the reversal of a $21.6 million impairment charge at Kagem following the government’s suspension of a 15% shipment levy. The group also received $30.4 million from the sale of its shares in Jupiter Mines, an Australia-based metal miner.

Revenue from Gemfields’ Montepuez ruby mine in Mozambique fell 4% to $121.5 million for the year, while sales at Kagem rose 31% to $79 million. Revenue at its Fabergé retail brand fell 22% to $10.5 million.

Due to the coronavirus pandemic, Gemfields is not sure when its ruby and emerald auctions scheduled for the next few months will take place, the miner said. In light of that situation, the company has not provided guidance for 2020, but is working on ways to carry on with sales during the lockdown.

“The board and management of the company will continue to assess all options in relation to selling gemstones in the current climate, and will provide further updates in due course,” it added.